2001 Annual Report - Unibail-Rodamco

FINANCIAL RESOURCES
6- Financial structure
of the property portfolio
Revalued net assets amounted to € 7,327m at year-end 2001.
Revalued shareholders’ equity allocated to the property portfolio
rose to € 4,081m. This figure includes potential capital gains on
property assets. Other liabilities comprise: i) € 117m in partners’
current accounts, which are treated as shareholders’ equity in
financial ratio calculations due to their nature; ii) € 63m in
deposits; and iii) € 3,066m in debt.
Property portfolio revalued balance sheets (€m)
Assets
4 081
7 327 63
117
3 066
Liabilities
Key balance sheet ratios
Revalued shareholders’ equity
Revalued property assets
Deposits
Partners’ current accounts
Bank loans, interbank instruments
and other borrowings
These figures do not include the potential increase in shareholders’
equity due to the exercise of warrants and stock options. These
instruments are all "in the money" and represent a total of € 115m
in additional shareholders’ equity for Unibail, which would further
reduce its debt ratios.
Interest cover
EBITDA interest cover remains at a comfortable level at 2.6x.
The decrease compared with year-end 2000 is mainly due to
delayed rental income from Coeur Défense as the property went
into operation during the second quarter of 2001.
The increase in rental income resulting from Coeur Défense’s 94%
occupancy rate as at January 1, 2002, coupled with a contractual
margin reduction in the loan agreement for this project, should help
reinforce this ratio in 2002.
Financial ratios Year-end 2000 Year-end 2001
Debt/Market value of properties 41% 42%
Debt/Revalued shareholders’ equity 72% 75%
EBITDA interest cover (1) 3.0 2.6
(1)
Calculation based on the ratio EBITDA/Financial expenses. For the purpose of the calculation,
financial expenses capitalized during the construction period are included in ‘Interest
charges ’. However, financial expenses incurred by finance leasing operations which are normally
deducted from Unibail ’s EBITDA are not included in ‘Interest charges ’
Unibail’s key balance sheet ratios have held steady. These ratios are
based on the revalued balance sheets for its property portfolio.
Debt ratio
Over the past few years, Unibail has set a prudential ceiling of 50%
for its ratio Net debt/Market value of properties, which can only be
exceeded temporarily. At year-end 2001, this ratio stood at 42%,
virtually unchanged since its year-end 2000 level of 41%, while
the ratio Net debt/Revalued shareholders' equity allocated to the
property portfolio rose to 75% against 72% at year-end 2000.
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